Update 8/26/11

AAPL Put Seagull

AAPL moved higher this past week although the move caused iV to fall bleeding out some of the profits. AAPL is approaching the short strike at 390 so I expect profits to pick up when Sep Theta starts kicking in. Currently there is a 33% profit.

NKE Call Seagull

NKE also moved higher this week slightly above the short strike. The IV skew has narrowed giving the position an additional $1000 of profit this week. The total profit is now at 11%.

NVS PCCRC

NVS moved up a little this week and is sporting a small 3% profit thus far.

Update 8/19/11

I created this last Friday, but for some reason it didn't post. Sorry for the delay.

LULU Bullish Butterfly

I closed LULU on Tuesday by selling the inverse of the position for a 6.10 credit. LULU crashed downward since then showing the danger of holding a directional butterfly too close to expiration. Today the position would have been a max loss, but by getting out Tuesday LULU posted a 74% gain.

KMX Put Seagull

I decided to close the KMX Put Seagull yesterday as it was posting a small loss and I have a rule not to roll losing PCCRC positions. As it turns out this one would have been profitable by today but it wasn't worth the risk. The final tally on this trade was a loss of 2%.

JOYG Call Seagull

I also closed the JOYG call seagull on Tuesday. When IV in the long options get over 50 I usually will exit a PCCRC. The JOYG ended up with a 9% profit.



AAPL Put Seagull

I rolled the shorts in the AAPL Put Seagull out to September yesterday for a 7.5 credit. This trade is doing well and boasts a profit of nearly $5k.

NKE Call Seagull

On Monday I opened a new Call Seagull in NKE. After 4 days the position sports a 4% profit.



NVS PCCRC

Today I opened a new PCCRC in NVS. This one is iffy as the IV/SV is over 1 but the risk graph looks really good almost completely above 0, so we will see how it does.

Update 8/12/11

LULU Bullish Butterfly

LULU rose most of this week allowing the butterfly position to regain most of the profits lost last week. With the options expiring next Friday I will be watching closely to decide when to close the position. Current profit is 61%.

KMX Put Seagull

KMX initially went lower this week but recovered later in the week to finish flat for the week. Normally I would have rolled the shorts today, but with the market moving higher I have decided to wait until Monday or Tuesday to see if KMX can move closer to the short strike at 32. I did take some Vega profits by selling 3 straddles for a 6.70 credit. There is a total profit on the position of 4%.

JOYG Call Seagull

I also took some profits in JOYG by rolling 2 more long puts down to the 80 strike for a 10.50 credit. I am waiting on rolling this one also although I may decide to close it instead next week. Currently there is a profit of 21%.

AAPL Put Seagull

The AAPL Put Seagull has done very well and with IV only in the mid-30s I may continue this trade another month. I am also giving AAPL a couple of more days to get closer to the short strike which will increase my credit when rolling. Currently AAPL shows a profit of 31%.



Update 8/5/11

The market meltdown was very good for the PCCRCs late this week, giving the account a 9% gain the last two days.

LULU Bullish Butterfly

LULU dropped with the market the last two weeks and was also hurt by rising volatility. The profit is about half what it was two weeks ago but if we get a bounce back the position will be fine. Current profit is +28%.



KMX Put Seagull

KMX finally turned slightly profitable today and I took some profits by selling 2 Oct 32 Puts for 5.10. This will help the position a little if KMX reverses and moves up and also reduces the risk slightly. Current profit is +1%.

JOYG Call Seagull

JOYG moved down with the rest of the market and yielded some nice Vega profits. I adjusted the position by rolling 4 Puts down for a 10.40 credit. Here is the risk graph just prior to the adjustment:

Note how the current price is below the lowest dip on the left hand side of the graph. If JOYG reversed and moved up some I would lose some profits. Here is the position after the adjustment:

Note how I am now centered in the dip and a move in either direction will bring more profit. A move up will now be more profitable than before and I have reduced the debit by over $4000. Currently the profit stands at 20%.

AAPL Put Seagull

AAPL has hung in fairly well with the drop in the market and the price has stayed inside the "cone" area of the risk graph so I have not made any adjustments. Profit now stands at 23%.